Capchase lands $280m as new BNPL product launches

The Capchase Expense Financing solution is made possible by $280 million in new debt and equity funding, led by i80 Group

Capchase, a New York-based provider of non-dilutive capital, has secured $280 million in new debt and equity financing in a round led by i80 Group.

The new funding comes on the heels of continued growth and the introduction of Capchase Expense Financing, a new buy now, pay later (BNPL) product that helps companies split large expenses over time, in fixed repayment terms.

When combined with Capchase’s leading programmatic funding solution, companies unlock resources for growth while preserving their cash.

Capchase Expense Financing enables companies to manage their largest expenses—such as legal bills, hosting services, payroll and bonus payments, and recruitment fees, to name a few—without depleting their cash. Repayment terms are fixed in either three, six, nine, or 12-month increments.

With Capchase Expense Financing, companies can avoid large, immediate outflows, time their expenses with their revenue, and identify certain expenses that they would rather repay over time—all benefits that were never before possible.

“Our new BNPL solution is a first in our industry, and we believe it will be a game changer,” notes Miguel Fernandez, co-founder and chief executive officer of Capchase. “Since we launched just over a year ago, we’ve seen first-hand the challenges that companies face when securing the financing they need to grow their business.”

“Managing large expenses and having to make difficult decisions over how they spend their cash is one of the most consistent and trying issues that our clients face. Now, Capchase users can pay upfront, get a discount, and split their expense payments over fixed monthly increments.”

Capchase was launched in 2020 to help recurring-revenue companies secure growth capital that doesn’t dilute their founders’ ownership.

The development of Capchase’s expense financing solution is a reflection of the company’s rapid growth over the past year and continued fundraising momentum in 2021.

Since launch, Capchase clients have added more than 3,000 months of runway for 500 different companies, have added over $160 million in annual recurring revenue and have increased in valuation by $4 billion+.

The Capchase Expense Financing solution is made possible by $280 million in new debt and equity funding, led by i80 Group, an innovative investment firm that partners with pre-eminent tech-enabled companies to extend credit solutions that are uniquely designed to fuel growth.

With this new funding, Capchase will be able to substantially increase the number of companies it is able to work with, as well as the amount of funding it is able to provide.

Image: Capchase

Mark Dugdale